L&T Finance Holdings Completes Merger Of Three Subsidiaries With Itself
L&T Finance Holdings Ltd.'s merger with its subsidiaries comes into effect from Dec. 4, 2023.
L&T Finance Holdings Ltd. has completed the merger of its three subsidiaries with itself on Dec. 4, according to a company statement.
LTFH completed this merger with its subsidiaries, viz., L&T Finance Ltd., L&T Infra Credit Ltd., and L&T Mutual Fund Trustee Ltd.
With this, LTFH will be the single lending entity through which all businesses will be executed, the non-banking financial company said.
The company opted for this merger to avoid the creation of two equity-listed entities in order to comply with the Reserve Bank of India's scale-based regulations, it said.
The guidelines mandate the listing of an upper-layer NBFC on the stock exchange within three years from the date of categorisation.
The merger would also enhance governance and controls due to a simplified corporate structure.
Moreover, liquidity management would enhance treasury and operational efficiency, the company said.
The boards of the respective companies approved the proposed merger in January 2023. However, the process was completed after requisitive approvals were received from shareholders and creditors.
The approvals also came from important regulatory and statutory bodies: the Reserve Bank of India, the National Company Law Tribunal, the Securities and Exchange Board of India, and stock exchanges.